New research explores how to grow Australia’s social housing system

New mission-focused policies with long-term investment strategies could reverse Australia’s decline in social housing provision, a report from the Australian Housing and Urban Research Institute (AHURI) suggests.

The research shows, over the past three decades, the modest growth in the overall social housing stock has not kept pace with Australia’s population growth.

Total social housing stock grew from 379,753 dwellings in 1997 to 442,884 in 2023. However, as a proportion of total housing stock in Australia, social housing declined from 5.2% in 1997 to 3.9% in 2023.

A multi-provider system

Under Australia’s social housing multi-provider system, social and affordable housing services are provided by a variety of entities.

The system includes public housing, managed by state and territory government agencies; community housing, managed by not-for-profit providers; and some housing provided through the National Disability Insurance Scheme (NDIS) or National Rental Affordability Scheme (NRAS).

Public housing accounted for 95% of all social housing in Australia in 1997. By 2023 its share had fallen to 67%. This was mainly because of the transfer of stock to community housing organisations.

While the volume of community housing stock has grown, the number of community housing organisations has declined—from 1,350 in 2001 to 492 in 2023. This has resulted in 36 providers (or 7.3% of community housing organisations) controlling 71% of the total community housing stock.

“This concentration suggests that while many [community housing organisations] exist, the sector is dominated by a few large organisations, which could impact community engagement and service delivery,” the report states.

Investing in social housing

Australia’s finance-driven approach to funding social housing fundamentally differs from European needs-based systems that have built up, protected and reinvested equity over generations.

The report suggests a long-term investment strategy could strengthen social housing development, direction and innovation—provided it is linked to funded needs-based targets and realistic performance indicators and outcomes.

Developing frameworks for cost efficiency, equity and effectiveness could also improve Australia’s social housing multi-provider system. These frameworks would consider land, finance, construction, maintenance and management costs, and should reference international best practice.

“It is not uncommon for Australian social housing providers to make a surplus, particularly when the stock they are managing is free from debt and in good condition,” the report states.

With suitable regulation, these surpluses can contribute equity to grow new social housing stock, leading to self-sustaining systems.

The report, ‘Australia's multi-provider social housing system: contest or growth?’, was undertaken for AHURI by researchers from RMIT University and The University of Sydney.